Organizational Behavior
the concept of strategy
Tomáš Ondráček
ondracek.t@mail.muni.cz
Faculty of Economics and Administration, Masaryk University
2020
What is strategy?
What is strategy?
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What is strategy?
examples
sport
games
speeches
. . .
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What is strategy?
characteristics
direction
complexity
length
action
flexibility
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What is strategy?
examples of definitions
The determination of the basic, long-term goals and objectives
of an enterprise, and the adoption of courses of action
and the allocation of resources necessary for these goals.
(Chandler, 1962: 13)
Strategy is regarded as a unifying idea which links purpose
and action.
(White, 2004: 5)
a cohesive response to an important challenge
(Rumelt, 2011: 6)
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Why Do Firms Need Strategy?
Why Do Firms Need Strategy?
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Why Do Firms Need Strategy?
goals
long-term
complex
coordinated
...
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Why Do Firms Need Strategy?
functions
decision support
coordinative device
...
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From Corporate Planning to Strategic Management
From Corporate Planning
to Strategic Management
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From Corporate Planning to Strategic Management
history of changing environment
great depression
WWII
undoing of colonialism
cold war
cognitive revolution
computers
oil crisis
...
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From Corporate Planning to Strategic Management
focus
corporate planning
systematic approaches to long-term development
setting goals and objectives
forecasting key economic trends
establishing priorities for different products and business areas
allocating capital expenditures
the decline of belief in the ability to foresee distant future
external vs. internal sources
new ways for predictions
less plans more options
sustainability
justice
...
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From Corporate Planning to Strategic Management
focus
finances
plans
positions
competitive advantage
adaptability
...
(Grant, 2016: 15)
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Where Do We Find Strategy?
Where Do We Find Strategy?
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Where Do We Find Strategy?
documents
Mission Statement
Statement of values (principles)
Vision Statement
Strategy Statement
(Collis & Rukstad, 2008)
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Basic Framework for Strategy Analysis
Basic Framework
for Strategy Analysis
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Basic Framework for Strategy Analysis
basic framework
THE FIRM THE INDUSTRY ENVIRONMENT
goals and values competitors
resources and capabilities ↔ STRATEGY ↔ customers
structure and system suppliers
(Grant, 2016: 10)
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Corporate and Business Strategy
Corporate and Business Strategy
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Corporate and Business Strategy
corporate strategy
Corporate strategy defines the markets and industries in which the
firm wishes to compete. It is concerned with vertical integration,
diversification, new ventures, acquisitions, and resource allocation
between the firm’s different businesses.
business strategy
Business strategy determines how the firm competes within a
particular industry or market. Thus, it is highly focused on defining
and establishing a competitive advantage over market rivals to
prosper within an industry.
(Grant, 2016: 10)
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Strategic Fit
Strategic Fit
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Strategic Fit
strategic fit
The critical concept of strategic fit represents the internal consistency
among the different elements of a firm’s strategy. Effective strategies
must be functional; an individual decision must be unified to create a
consistent strategic position and direction of development
(Ansoff, 1957)
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Design versus Emergence
Design versus Emergence
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Design versus Emergence
types
Intended
Emergent
Realized
(Mintzberg, 1994; Mintzberg & Waters, 1985)
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Applying Strategy Analysis
Applying Strategy Analysis
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Applying Strategy Analysis
process
industry
→ analysis →
identify
→ appraise
→ diagnose formulate
→ implement
the current strategy performance performance strategy strategy
→ analysis →
of resources
and capabilities
(Grant, 2016: 25)
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Sources
Ansoff, H. I. (1957). Strategies for diversification. Harvard business review, 35(5).
Chandler, A. D. (1962). Strategy and structure: Chapters in the American industrial enterprise. Beard Books.
ISBN:.
Collis, D. J., & Rukstad, M. G. (2008). Can you say what your strategy is? Harvard business review, 86(4).
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons. ISBN:,
978–1–119–12084–1.
Mintzberg, H. (1994). The fall and rise of strategic planning. Harvard business review, 72(1).
Mintzberg, H., & Waters, J. A. (1985). Of strategies, deliberate and emergent. Strategic management journal,
6(3). doi: 10.1007/978-1-349-20317-8_1
Rumelt, R. P. (2011). Good Strategy Bad Strategy: The difference and why it matters. Crown Business.
White, C. (2004). Strategic Management. PALGRAVE MACMILLAN.